Intel Unveils NEW Pentium 4 Chips, Trims Prices

[Shrek]

http://news.com.com/2100-1001-955310.html?tag=fd_top

Intel Unveils NEW Pentium 4 Chips, Trims Prices

By Michael Kanellos
Staff Writer, CNET News.com
August 26, 2002, 8:41 AM PT

Intel came out with four new Pentium 4 processors on Monday and at the same time enacted the first phase of a major price cut.

The Santa Clara, Calif.-based chipmaker released desktop Pentium 4 chips running at 2.8GHz, 2.66GHz, 2.6GHz and 2.5GHz, and those chips will be incorporated into new PCs from Dell Computer, IBM and others. Gateway, for example, is using the 2.8GHz and 2.6GHz processors in its new Profile 4 line of computers with a built-in flat-panel monitor, which debuted Monday.

The new chips also kicked off stage one of a price reduction, something Intel hasn't done for its desktop line since June. The 2.8GHz chip will sell for $508 in 1,000-unit quantities, while the 2.66GHz and 2.6GHz will sell for $401 in volume quantities. The 2.5GHz chip will sell for $243.

With the release, the existing 2.53GHz Pentium 4 will drop from $637 to $253. Intel is expected to cut prices for the rest of the Pentium 4 line as well as the Celeron line on Sept. 1, according to sources. The discounting has already been implemented in part--dealers and distributors have been selling Intel chips at a discount recently to get rid of excess inventories during the summer sales doldrums.

The new chips come amid a desperate race between Intel and longtime rival Advanced Micro Devices. With the downturn in the PC market, the two companies are cutting prices and raising the speed of their microprocessors to gain as much market share as possible and curtail revenue declines. Last quarter, Intel regained six points of market share, on a year-to-year basis, partly through price cuts.

Last week, Sunnyvale, Calif.-based AMD cut prices and announced that two new chips, the Athlon XP 2400+ and the 2600+, would hit store shelves in September. In recent months, AMD has fallen behind Intel in terms of overall performance, according to several analysts. The 2400+ processor had also been delayed from its original release time in the second quarter.

AMD, however, redesigned elements of the Athlon, and the upcoming chips will substantially eradicate any performance differences.

"(AMD) had fallen behind, but they have closed the gap to a certain degree," said Nathan Brookwood, an analyst at Insight 64.

The 2.8GHz and 2.66 chips come with a 533MHz bus, a data path that connects the processor to main memory, a feature also found on the 2.53GHz chip released in June. The 2.6GHz and 2.5GHz chips, meanwhile, come with a 400MHz bus. Typically, a faster bus boosts performance.

A 3GHz Pentium 4 will arrive in the fourth quarter, while AMD will begin to ship its much-anticipated "Hammer" chip to manufacturers at the same time.

What does this mean for Apple and AMD?

[krossfyter]

absolutly nothing i assume. apple is just going to play its own game as usual and have amd or someone else bust out with a 5.0 ghz chip for macs when ready.

[vniow]

Apple:

Will get that goddamn G5 out as soon as they can. If it is the IBM Power4-minime, even a 1.5 Ghz will kick a 3Ghz P4 ass. The big selling point there would be 64-bit, not speed. More people are buying into the MHz or GHz myth, look at the recent lawsuit against Intel. While that might not go through, it got quite a bit of attention. Plus G5 looks like a better performer than P4 doesn't it?

AMD:
Will have to catch up, at least for a little while, since speed sells in the PC world. The Hammer's selling point will also be 64-bit and 32-bit compatibility. Things are going to get interesting in the processor world in the next year.

[Biggles]

Originally posted by krossfyter
absolutly nothing i assume. apple is just going to play its own game as usual and have amd or someone else bust out with a 5.0 ghz chip for macs when ready.

optimism is good, but this just puts apple behind even more

[krossfyter]

Originally posted by Biggles


optimism is good, but this just puts apple behind even more

ahh im just screwing around man. its cool.


by the way how would that put apple behind?

[Biggles]

intel releases faster chips, and lowers the prices of their older chips.....and this is compared to apple that has yet to release a truly "fast" chip, and their prices are ridiculously high

thats how apple is falling behind

[krossfyter]

Originally posted by Biggles
intel releases faster chips, and lowers the prices of their older chips.....and this is compared to apple that has yet to release a truly "fast" chip, and their prices are ridiculously high

thats how apple is falling behind

alright man... (this is wierd)... that i understand but apple wont fall behind if they release a 5.0ghz chip (which they wont...its a joke in case you havent caught it) and keep the price a little the same etc. etc. ...


but this is a just a joke anyways... so i dont even know why im defending a joke here man... ive gone insane i guess.